When retired physics professor Norm Dessel and his wife, Mary, wanted to sell their vacation home in the mountains, they realized they would pay a steep capital gains tax since it had increased significantly in value. Before selling their property, they decided to fund a CRT at SDSU with 40 percent of the asset. When the property sold, the income tax deduction from the CRT directly offset the capital gains tax owed on the 60 percent they received in cash – resulting in a tax-free sale. The CRT will pay out a seven percent income stream to the Dessels and their children for 20 years, so that the family will recoup more than the value of the 40 percent interest placed in the trust.

Music has always been an important part of their lives. The couple met in the Midwest while singing in a high school choir, and just this past January, they traveled to New York to sing in a chorale at Carnegie Hall. Therefore, it is fitting that when the Dessels decided to sell their vacation home and give nearly half of the property value to charity, they chose to make a contribution to SDSU’s School of Music.

Parting with the vacation home was a difficult decision for the Dessels. They bought the 4.5-acre plot of land near Julian in 1988, and by 1991 had developed it into a beautiful vacation get-away with a 360-degree view from the mountains to the ocean. Fortunately, thanks to a few proactive safety measures, the house survived the San Diego Wildfires of 2003.

While for 15 years their vacation getaway was the site of many precious memories as well as a second home for Norm, Mary and their three children, the couple sold the home in order to spend their vacation time traveling to new and exciting locales. By creating a charitable remainder trust (CRT) at SDSU, they are able to be philanthropic while also deriving income to help finance their adventures. The CRT will pay the Dessel family an income for 20 years, and at that time, the remaining investment will be donated in support SDSU’s music students.

This chart shows how the Dessel's were able to sell their home tax-free while also making a significant donation to San Diego State.